There is a misconception among the general public and professionals as well, that when the last survivor passes away, the Bank will assume ownership of the property and the heirs will receive nothing at the end of the loan. This is one of those persistent myths that as continued for quite some time and is totally incorrect and sadly hurts the senior community and their families when they are trying to make a decision as to whether or not a Reverse loan would be appropriate to use. When the last borrower passes away, the heirs inherit the property, at which time the loan becomes due. The family will have 12 months to pay off the loan and typically it’s done through the sale of the property. When the sale is concluded, they will receive the remaining equity and any interest that has accrued on the loan, is a tax deduction for the heirs within that year.

Unlike a traditional loan where the applicants(s) must prove that they can make the mortgage payments and have good credit scores, the qualifications for a Reverse loan are completely different. A Reverse loan doesn’t require the borrower to ever make any mortgage payments but instead, the borrower receives money (equity) from their home. Even if they should have poor credit scores, that will not affect their ability to be approved. The only requirement is that the borrower(s) be age 62.

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Dear Lorraine, You began the process for me, the process of breathing again. We were both working our display booths at the Ventura County buildings; mine with the County Fire Department and you represented your advisory company. As you descibed the highlights of a Reverse mortgage to me, it dawned on me that this could be the answer to my problem, ie., how could I pay for my wife's medical condition. After that lucky meeting, I checked out your company & found out it was doing business with FHA & apparently doing so without trouble. I checked out 3 other similar agencies, all with similar track records. So- I stayed with my original choice and didn't regret it for a single moment. So I thank you once again and strongly recommend your company to any other seekers of a compassionate and willing helper. Sincerely, Raymond A. O'Grady Newbury Park, CA
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